Economics For Today
9th Edition
ISBN: 9781305507074
Author: Tucker, Irvin B.
Publisher: Cengage Learning,
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Chapter 4, Problem 20SQ
To determine
Describe the shift of the demand curve and its effects in equilibrium.
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If a price decrease leads to a decrease in consumer expenditure on the good, then demand must be [blank].
X is an inferior good. If there is an increase in incomes, then (quantity supplied,quantity demanded, supply, demand) for good X will (increase, decrease). This will cause the equilibrium price to (increase, decrease) and quantity to (increase, decrease).
If a new type of fertilizer is invented that makes coconut trees twice as productive, the (quantity supplied, quantity demanded, supply, demand) for coconuts will (increase, decrease). This will cause the price to (increase, decrease) and quantity to (increase, decrease).
a) decrease in demand.
Price
b) increase in quantity demanded.
c) increase in demand.
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Refer to Figure 4-2. A change from Point A to Point B represents a(n):
d) decrease in quantity demanded.
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Chapter 4 Solutions
Economics For Today
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
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- If the demand for a good increases when incomes rise and decreases when incomes fall, the good is called a normal good. See 3-2: Demand True Falsearrow_forwardWhat is wrong with this statement? Demand refers to the willingness of buyers to purchase different quantities of a good at different prices during a specific time period.arrow_forward2) A decrease in production costs of good X led to higher equilibrium quantity and higher price of good X. Which of the following describes good X? If you believe there are several correct answers, chose the one that provides the most precise (narrowest) description of X. A) X is an Abrasive good B) X is a Barber good C) X is a Curtius good D) X is a Dremen good E) X is an Elapsed good F) X is a Friedman good G) X is a Giffen good H) X is Hash good I) X is a normal good J) X is a sub-normal good K) X is an inferior good L) X is a superior good M) The scenario described in this question is impossible if all agents make rational decisions N) None of the abovearrow_forward
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- 1) An increase in the production costs of good X led to a lower equilibrium quantity and a higher price of good X. As a result, the equilibrium quantity of good Y decreased. Furthermore, the percentage change in equilibrium quantity was higher for good X than for good Y. What can you say about these products? A) Both X and Y are Abrasive goods B) Both X and Y are Barber goods C) Both X and Y are Curtius goods D) Both X and Y are Dremen goods E) Both X and Y are Elapsed goods F) Both X andY are Friedman goods G) Both X and Y are Giffen goods H) Both X and Y are Hash goods I) X is an inferior good relative to Y J) X is a superior good relative to Y K) X and Y are complements L) X and Y are substitutes M) There are exactly two correct answers above and they can be determined based on the available information N) The scenario described in this question is impossible if all agents make rational decisions O) None of the abovearrow_forwardQuestion 11 If the good in the above figure is a normal good and income rises, then the new equilibrium quantity is __________________. Question 11 options: a) more than 300 units b) less than 300 units c) could be less than, equal to, or more than 300 units d) 300 units Question 12 The initial supply and demand curves for a good are illustrated in the graph above. If there are technological advances in producing the good, what is the new price for the good? Question 12 options: a) $6 b) More than $6 c) Could be less than, equal to, or more than $6 d) Less than $6 Question 13 The initial supply and demand curves for a good are…arrow_forwardIf the number of buyers in a market increases from 25 to 75, you would expect the equilibrium price to _____ and the equilibrium quantity to _____, holding all else constant. Group of answer choices remain the same; remain the same decrease; decrease decrease; increase increase; increase increase; decreasearrow_forward
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